Charge a restocking fee on a refund

If you keep part of a refund back as a restocking fee, that fee is income and usually belongs in its own account in Xero rather than being netted off the refund.

Option 1: Fees you charge on a Shopify return

If you charge a restocking fee or a return shipping fee on a Shopify return, Post to Xero can post each fee as its own line on the credit note. It needs one permission from you.

1. In the Post to Xero app, open Setup - Advanced and find Optional permissions.
2. Under Return details, click Allow return details. Shopify asks you to approve it, and the store owner, or a staff member who can manage apps, needs to approve it.
3. Optional: if you want restocking fees on their own Xero account, email us at help@hyvelabs.co with your shop URL and the account. We set it up for you.

Return shipping fees go to the shipping account you already chose in Setup. They work as soon as you allow the permission. Until we set the restocking account, a restocking fee posts the older way and may not be told apart.

If you do not allow the permission, nothing breaks. Refunds still sync as before. If a refund note has one of the words from Option 2, that fee line is used.

Option 2: Fees written in the refund note

Use this if you type the fee into the refund note instead of using Shopify returns.

How it Works

We set up a list of words that identify a restocking fee. When you issue a refund and the refund note contains one of those words, the credit note gets a separate labelled Restocking Fee line for that amount.

The note is what's checked, not the order or the product. If the word isn't in the note, no fee line is added and the refund posts as normal.

How to Request Setup

Email us at help@hyvelabs.co with your shop URL and the words you'd like us to look for (for example restocking or fee). We tell you which Xero account the fee line will use when we turn it on.

Once it's on, just make sure whoever issues refunds puts the agreed word in the refund note.